CABINET OFFICE

Better Regulation Bill (Consultation Responses)

Jim Murphy: A copy of the summary of the public consultation on proposals for a Better Regulation Bill is today being placed in the House Library and on the website of the Cabinet Office Better Regulation Executive at:
	http://www.cabinetoffice.gov.uk/regulation/
	The publication of the summary of consultation responses follows a three-month consultation exercise, which ran from 20 July to 12 October 2005.
	The proposed Bill will replace the Regulatory Reform Act 2001, so that it is easier to remove or amend outdated and unnecessary legislation. It also requires regulators to have regard to a set of regulatory principles which will be contained in and made under the proposed Bill.
	This document also includes the Government's responses to issues raised during the consultation process.

CONSTITUTIONAL AFFAIRS

Co-ordinated Online Record of Electors

Harriet Harman: My right hon. Friend the Secretary of State and Lord Chancellor, Lord Falconer of Thoroton, has made the following written ministerial statement in the other place today, 14 December 2005:
	"Today, I am pleased to announce to the House the launch of a consultation on detailed issues and proposals for the implementation of arrangements providing national access to locally collected and maintained electoral registration data.
	Part one of the Electoral Administration Bill currently before Parliament makes provision for the establishment of one or more Co-ordinated Online Record of Elector (CORE) schemes. It will allow—at national level—access to electoral registration data that will continue to be locally gathered and maintained. The scheme would be established by a secondary legislation order, a draft of which would first need to be actively approved by both Houses of Parliament. The paper seeks views on what the CORE scheme order should contain. Stakeholders will have until 7 March 2006 to respond.
	Copies of the consultation document are available in the Libraries of both Houses and will also be made available on the website of the Department of Constitutional Affairs."

Boundary for Wales Commission Report

Harriet Harman: I have today laid the Report of the Parliamentary Boundary Commission for Wales, and associated Draft Order, before Parliament. The Report, and associated Draft Order, will affect Welsh Parliamentary Constituencies and National Assembly for Wales Electoral Regions.

DEFENCE

Autumn Performance Report

John Reid: I have today placed in the Library of the House copies of the Ministry of Defence's "Autumn Performance Report". This shows that Defence has continued to deliver on its primary objectives in the last six months. The armed forces, supported by their civilian colleagues, have consistently succeeded on military operations, including providing support to a number of home departments, and have made a significant contribution towards the Government's wider conflict prevention goals. At the same time we have continued to improve the level of military readiness and deliver the changes and efficiencies needed to make the most of the resources available for defence. In particular, a major programme of work is currently in hand across defence, the Government and industry to improve the way in which we acquire and support equipment.

Future Aircraft Carrier (CVF)

John Reid: The Ministry of Defence has today taken a major step forward in its plans to acquire two new Future Aircraft Carriers (CVF) for the Royal Navy. These carriers will provide mobile, flexible, independent bases from which to deploy the Joint Combat Aircraft (JCA) and other capabilities. They will provide a step change in capability—enabling us to deliver significant strategic effect and influence around the world at the time and place of our choosing.
	I am pleased to announce agreement on an innovative shipbuild strategy for these vessels, bringing together a number of shipyards in a type of partnering arrangement that will be central to the forthcoming Defence Industrial Strategy.
	Key to this ground-breaking approach will be the innovative Aircraft Carrier Alliance: a single integrated team formed from MOD and industry. I am pleased to announce that today also marks a major stage in the development of the Alliance with the shipyards VT and Babcock now joining BAE Systems, KBR, Thales UK and MOD as full members. To mark the commitment to the Alliance approach, these five companies and MOD have signed an Alliance Charter committing to this arrangement. The Alliance has also agreed the best allocation of roles and responsibilities between them to achieve overall success for the project. In doing so all the Alliance members will share in the risks and rewards of delivering this challenging project to time and cost.
	Having completed detailed assessment work, we have now decided to commit to the Demonstration phase, amounting to some £300 million of further work: an essential step before we commit to and contract for manufacture of these two ships. This is the first of a two-stage incremental approach to "Main Gate". The second stage of the "Main Gate" approval will set the time, cost and performance envelope for the manufacture phase. Shifting the point at which we make the main investment decision has no effect on the "In Service Date". We are undertaking work now that we had originally intended to undertake during the demonstration phase after full commitment to manufacture.
	We will now refine the detail of the adaptable CVF Delta design for these new carriers, including the ship systems, ahead of rather than after the signature of manufacture contracts. By this innovative approach we will ensure the commitment of the maritime industry to supporting this vital project. This further approval also includes commitment to long lead materials, where this is necessary to maintain the momentum of the build programme.
	In addition, we are now able to maintain momentum and give the industry a greater degree of planning stability. I can announce that subject to satisfactory contract and demonstration of value for money—that we have already allocated some 60 per cent. of the carriers to be built in separate "super blocks" at BAE Systems yards at Govan and Barrow; at VT in Portsmouth and Babcock in Rosyth, with final assembly of both carriers at Rosyth. The structure above the hangar deck will be open to competition and will allow an opportunity for the many shipyards and suppliers with the ability to undertake this work, but not currently involved, to compete and win work. These blocks will then be joined to the base structure at Rosyth. We will also aim to maximise the level of subcontract competition within the "super blocks". Early indications suggest that CVF associated work could sustain and create some 10,000 jobs in the UK across its design and manufacture period.
	The expansion of the Alliance partnership provides an important launch pad for further innovation on this project. We have agreed that we will jointly consider, subject to negotiation, how the build contract can be extended to encompass not only the carriers' initial support but also the support for the Invincible class carriers until their out of service dates. This approach will ensure coherency in maintaining continuity in our carrier capability, with the same companies responsible for ensuring the continuation in service of the Invincible carriers also managing the introduction into service of their replacements.
	In parallel with this approach, we are continuing our discussions with France, with whom we are jointly examining areas of mutual benefit and opportunities to deliver economies in our respective carrier programmes. For any co-operation to work, however, it must deliver cost savings and must do so without delaying UK or French programmes and we look forward to receiving industry's proposals.
	Taken together, therefore, our approach provides a key stepping stone towards the developing maritime industrial strategy which we intend to outline in our forthcoming Defence Industrial Strategy. It is already clear that the CVF programme, as part of the wider Carrier Strike capability with the Joint Strike Fighter, will offer the enhanced power projection capability required by our armed forces in the future. This announcement reinforces our commitment to this flagship project for the Royal Navy and represents a significant step on the route to re-shaping our maritime industry and providing this vital expeditionary capability.

EDUCATION AND SKILLS

14–19 Implementation Plan

Ruth Kelly: I have today placed copies of 14–19 Education and Skills Implementation Plan in the Libraries of both Houses.
	The Implementation Plan sets out what the reform programme we set out in the 14–19 White Paper published in February will mean in practice.
	We are aiming to create an education system that is not merely good but world class and which is built around the needs of all young people, employers and our society. We are guaranteeing more choice about what young people can learn so that they have a head start for a rewarding future. Our recent White Paper "Higher Standards, Better Schools for All" proposed reforms to ensure that every school is a good school and that every child receives increasingly tailored support. A continued focus on improving standards, especially in English and maths, in developing more personalised learning and in creating greater flexibility are strong components of both the l4–19 reform agenda and of our strategy for schools.
	At the heart of this system is a new curriculum entitlement which will offer each young person a choice of high quality learning pathways—including the option of more theoretical or more practical approaches at an appropriate level for them—which can be the basis for progression to further learning, higher education and employment. Delivering this entitlement will require profound change in the education system with collaboration of all players a key requisite for success.
	At the local level, a coherent 14–19 system will need excellent partnerships between Local Authorities and local Learning and Skills Councils. The role of Local Authorities as the integrators of services of children up to the age of 19 will be crucial.
	This Plan sets out how we will strengthen the role of local Government in 14–19 education, and pilot better models of partnership working between Local Authorities and the local LSCs to ensure the strategic development of 14–19 provision in their area, particularly in relation to local skill needs.
	The Implementation Plan sets out three key priorities: developing new qualifications and the curriculum; supporting every local area to deliver; and improving the system for today's young people.
	The agenda is a long-term one and we are working closely with key delivery partners to make it a reality. In taking work forward we will continue to consult with a wide range of individuals and organisations.

FOREIGN AND COMMONWEALTH AFFAIRS

European Union Budget 2007–13

Jack Straw: As presidency of the European Union, Her Majesty's Government are today circulating to all member states of the European Union revised proposals for the European Union budget in the next financial period 2007–13 inclusive. Copies of the proposal are available in the Library of the House and in the Vote Office.
	This written ministerial statement outlines the context of the proposal.
	These revised budget proposals maintain the four policy objectives set out in my written ministerial statement of 5 December, Official Report, columns 65–68 WS:
	The first is tough budget discipline. They remain well below the level proposed by the Luxembourg Presidency in June and 17 per cent. below the level proposed by the Commission.
	Secondly they help the new member states in the enlarged EU by building their economies and societies, and they more fairly distribute the costs among the better off nations. On 5 December, the UK offered an extra contribution to these costs of enlargement amounting to 8 billion euros over the budget period.
	Thirdly, the proposals keep the rebate. Indeed the rebate will rise, from an annual average over recent years of 5 billion euros to around 7 billion.
	Fourthly, the proposals ensure there can be no fundamental change in the rebate without fundamental reform of the Common Agricultural Policy. All spending, including on agriculture, will be subject to a review during the coming budget period.
	The revised proposals do, however, take account of the discussions amongst EU Foreign Ministers on 7 December and of the intensive bilateral contacts we have had with other member states and the European Commission since then. In particular, the revised proposals:
	Extend the scope of the practical changes we proposed to the rules governing structural and cohesion funding, and extend their application to Greece and Portugal, all of which should increase the impact of EU money on the ground in enhancing prosperity, stability and competitiveness.
	Provide extra money for the decommissioning of nuclear power plants in Slovakia and Lithuania, and additional structural and cohesion fund support for Poland, Hungary, the Czech Republic, Estonia and Latvia.
	Extend transitional cohesion funding for Spain until 2013, and grant additional funding for Ceuta and Melilla.
	Offer additional rural development funds to Finland, Ireland, Portugal, Sweden and Austria.
	Improve the net positions of Sweden and the Netherlands, two of the countries with the highest net contributions to the EU budget.
	Commit the Council to increase spending on R&D by 75 per cent. between 2006 and 2013
	The overall ceiling for the budget for 2007–13 with these changes is €849.3 billion (1.03 per cent. GNI).
	We remain convinced that these proposals are good for Britain and good for Europe, and offer a sound basis for agreement at this week's European Council.

HEALTH

NHS Ambulance Trusts

Patricia Hewitt: A review of ambulance services, "Taking Healthcare to the Patient: Transforming NHS Ambulance Services" was published in June 2005. It set out a clear strategic direction for ambulance services that would improve patient services. Over the next five years, ambulance services will provide an increasing range of mobile healthcare for patients who need urgent care. They will work to help provide diagnostic services and support patients with long-term conditions and they will continue to improve the speed and quality of ambulance responses to 999 calls.
	This review was undertaken by Peter Bradley CBE, Chief Executive of London Ambulance Service National Health Service Trust and National Ambulance Adviser, at the request of the Department of Health. He was supported by a reference group of key stakeholders including ambulance trust chief executives, clinicians and representatives of other NHS organisations. Copies of the review were placed in the Library in June 2005.
	The reference group's view was that in order for the benefits outlined in the review to be fully realised, ambulance trusts need to have sufficient strategic capacity, and to be of a size to attract the high calibre senior managers and leaders necessary to manage these new organisations. The review therefore recommended that there should be significantly fewer, larger ambulance trusts, so that ambulance trusts would have the infrastructure, capacity and capability necessary to deliver and sustain the changes needed.
	Benefits of these larger trusts include:
	More investment in front-line services as trusts make savings in "back room" functions;
	Improved patient care by providing an opportunity to raise the standards of service provided by all trusts to the level of the best;
	Better emergency planning with greater capacity and capability to respond to major incidents of all kinds;
	More integrated services and better career opportunities for staff.
	I have accepted the recommendation for fewer ambulance trusts. A 14-week consultation, led by strategic health authorities (SHAs) on my behalf, will now consider the future organisation of ambulance trusts. Consultation will begin today and conclude on 22 March 2006. Any changes to the organisation of ambulance trusts will only happen following local consultation and discussion with relevant parties in the local area.
	We expect that SHAs will involve hon. and right hon. Members in the consultations, including sending them copies of the consultation document. Some copies of the consultation document have also been placed in the Library.
	We believe these proposals to reorganise ambulance trusts, coupled with all other recommendations made in "Taking Healthcare to the Patient: Transforming NHS Ambulance Services" will put the NHS in the best position to provide more convenient, consistently high quality and appropriate mobile healthcare for the people of England. Under these proposals, there would be no reduction in ambulance vehicles or frontline staff. Instead, they will mean less bureaucracy and more money to invest in front-line services. Response times for life-threatening situations will not be adversely affected by these changes.
	I can confirm that the proposals for the reconfiguration of SHAs and the proposals for the reconfiguration of primary care trusts (PCTs), as set out in my written statement of 1 December, are also going forward for consultation from today. All proposals will be subject to a fourteen-week local consultation and will therefore run concurrently with the consultation on the proposed reconfiguration of NHS ambulance trusts. No decisions will be taken regarding the reconfiguration of SHAs or PCTs until the results of the local consultations have been considered and any recommendations reviewed.

HOME DEPARTMENT

Animal Procedures Committee

Andy Burnham: On behalf of the Home Secretary and the Minister for the Department of Health and Social Services and Public Safety for Northern Ireland, I am very pleased to announce the appointment of Ms Sara Nathan to chair the Animal Procedures Committee from 1 February 2006 for a four year term. Sara Nathan currently occupies several other non-executive positions with public bodies and is a member of Ofcom, the Criminal Injuries Compensation Appeal Panel and the Regulatory Decisions Committee of the Financial Services Authority. She is a former member of the Human Fertilisation and Embryology Authority.
	I also wish to thank the Reverend Professor Michael Banner, who stands down as chairman of the Animal Procedures Committee on 31 January 2006 for his work on the Committee. The Animal Procedures Committee has an important role providing advice to the Home Secretary, and the Minister for the Department of Health, Social Services and Public Safety for Northern Ireland, on matters concerned with the Animals (Scientific Procedures) Act 1986 and their functions under it, having regard both to the legitimate requirements of science and industry and to the protection of animals against avoidable suffering and unnecessary use. Under Michael Banner's skilful chairmanship the Committee has significantly expanded its role and has produced valuable and thoughtful advice on a number of issues relating to the use of animals in scientific procedures. This included the completion of a wide-ranging review of the Animals (Scientific Procedures) Act 1986. Ministerial colleagues wish to record our gratitude to Michael Banner for his excellent personal contribution to the work of the Committee over the last eight years.

Zimbabwe (Immigration Removals)

Tony McNulty: On 27 June my right hon. Friend, the Secretary of State for the Home Department made a statement on the return of failed asylum seekers to Zimbabwe and on 6 and 18 July he updated the House on that issue. I would like to provide a further update on returns to Zimbabwe.
	On 18 October the Asylum and Immigration Tribunal issued a determination in relation to the treatment of failed asylum seekers whose return to Zimbabwe was enforced. The Tribunal found that the particular way we were enforcing returns of failed Zimbabwean asylum seekers from the United Kingdom to Harare airport put them at risk of mistreatment. The Tribunal has refused permission to appeal their determination so we will be seeking permission to appeal from the Court of Appeal. In the meantime, as we made clear at the time of the Tribunal determination, we will not be enforcing returns of Zimbabweans to Zimbabwe whilst we work to resolve the concerns identified by the Tribunal.
	On 16 November, the Tribunal issued a further determination. They concluded that the effect of the earlier determination is that any Zimbabwean citizen who will not return there willingly is a refugee even though the method by which we enforce returns is being reviewed. We strongly disagree with this conclusion and will also be seeking permission to appeal this determination or others which rely upon it. We shall continue to take decisions based on the individual merits of the claims.
	In its 18 October determination the Tribunal did not find that Zimbabwe was unsafe generally for failed asylum seekers or that those who return voluntarily are at risk. Voluntary returns to Zimbabwe are possible and are continuing. We therefore expect failed asylum seekers to return voluntarily to Zimbabwe and will assist them in doing so through the International Organisation for Migration (IOM).
	The Government remain deeply concerned about the political and economic crisis in Zimbabwe, in particular its appalling human rights situation, and continue to work with international partners to press for an end to abuses.

NORTHERN IRELAND

Northern Ireland Departments (Priorities and Budget 2006–08)

Angela Smith: My hon. Friend the Minister of State for the Northern Ireland Office (Lord Rooker) has made the following ministerial statement:
	"Following consultation on the Government's 'Draft Priorities and Budget for Northern Ireland', which was launched on 25 October 2005, the Government are today setting out its priorities and spending plans for Northern Ireland Departments for the years 2006–07 and 2007–08. In reaching final decision on the allocations for the next two years, the ministerial team has considered carefully the views expressed during the consultation period on the draft proposals.
	Our vision is for a world class Northern Ireland, and the 'Priorities and Budget' we are publishing today represents key steps towards achieving that aim. To turn this vision into reality, we need to direct resources to support new initiatives; to fundamentally reform the way services are managed and delivered to get the best value for money; and to raise more money to pay for local services.
	Underpinning this vision, and providing a framework for the detailed spending plans, are the key strategic priorities of:
	economic growth;
	public sector reform;
	high quality public services; and
	a society based on partnership, equality, inclusion and mutual respect.
	These priorities will be taken forward by action across all Departments, supported by targets across a number of important areas, where the proposed outcomes will deliver the changes needed to ensure the achievement of the vision for Northern Ireland.
	In overall terms, Northern Ireland has benefited from massive increases in investment in public services in recent years and that growth will continue over the next two years. By March 2008 we will be spending in excess of £16 billion a year on public services in Northern Ireland. However, public expenditure per head in Northern Ireland is higher than any other region in the UK, while revenue raised from the domestic rating system is only around half the equivalent figure for the rest of the UK. This is unsustainable if we are to continue to improve public services here in Northern Ireland.
	There is the need to continue to invest resources wisely in areas that will help transform society and the economy. We are committed to investing in those services which make a difference in people's lives including—health and education; children and young people; promoting long term economic growth through investment in training and skills; and in protecting the environment through research and development of new sources of renewable and clean energy.
	As a key step in taking forward work in priority areas, we have established three new ring fenced priority funding packages, worth some £48 million in 2006–07 and £58 million in 2007–08 and underpinned by a further £15 million and £34 million capital investment in those years.
	Children and Young People
	For children and young people some £28 million and £33 million will be available to ensure every child has the best start in life. This will include driving forward our policies in areas such as pre-school and extended/out of hours school based activities, childcare and Sure Start, along with measures to foster their health and wellbeing. This will be a distinctive allocation of funding that will be used to make good the shortfall in provision for these key areas of support for families. A fundamental aspect of all of this will be the integrated delivery of programmes and activities to ensure real and effective joined up thinking and working by the key Departments and agencies involved.
	Skills and Science
	Beyond school age, around 24 per cent. of our working population has no qualifications whatsoever, compared with 15 per cent. in the UK as a whole. We are already committed to significant investment in skills and training programmes for employment. And we recognise the critical importance of ensuring a secure foundation for lifelong learning and employment. It is for this reason an additional £15 million next year and an additional £20 million the year after will be allocated to tackle economic inactivity and to promote greater investment in skills and science training leading to employment—alongside investment in research and development. Our working age population must have the skills to allow us to prosper in the new, more competitive, and highly skilled international markets that will dominate all our futures.
	Environment and Energy
	The quality of life in the future will also depend on our children continuing to enjoy the same clean and healthy environment that we do. That means we need to take action now to support the development and use of renewable forms of energy.
	An extra £5 million in each of the next two years will be allocated to encourage the research and development of renewable forms of energy. £10 million and £30 million over the next two years will also be available for capital investment in renewable energy. This will enhance the security and diversity of our energy supply and minimise the environmental impact of energy generation. Finally, capital investment of £5 million in 2006–07 and £4 million in 2007–08 will be available to ensure the 'Warm Homes' scheme in Northern Ireland can be extended to match the commitments made for central heating for pensioners in England, as set out in the Chancellor's recent pre-Budget report.
	The funding for these three priority packages comes from additional resources received in the course of the Chancellor's March 2005 Budget, and recent pre-Budget report, and from revenue raised as a result of a planned 19 per cent. increase in the domestic regional rate in 2006–07. For other areas, because this was not a Spending Review year, there were no additional resources available for allocation, compared to the position established last year. Therefore, to allow extra money to be allocated to the top priority services of health and education, the spending in lower priority areas has been reduced by 3 per cent. in 2006–07 and 4 per cent. in 2007–08.
	This approach provides for increases in health of 7.5 per cent. in 2006–07 and 6.4 per cent. in 2007–08, with education receiving increases of 4.2 per cent. in 2006–07 and 3.9 per cent. in 2007–08.
	Alongside the improvements in the financing of our public services, it is important that the management and delivery of those services is also improved. We are continuing to push forward the reform agenda initiated by the former Northern Ireland Executive and by the ministerial team since devolution was suspended.
	In the health service in Northern Ireland, as in the rest of the UK, there is the need to ensure that increased resources are matched by reform and improvement to ensure services are delivered both effectively and efficiently. The recent Independent Review of Health and Social Care Services completed by Professor John Appleby of the King's Fund made recommendations for creating more effective performance management across HPSS. These, together with recommendations on the funding of the health and social care sector and the new structure put forward by the RPA, will need to be considered.
	In education, programmes and actions are being developed to reduce the overcapacity and duplication of education provision, with the Investment Strategy for Northern Ireland playing a major part in reshaping the schools estate to contribute to the removal of surplus places.
	The Northern Ireland public sector will continue to push forward with the efficiency plans announced in last year's 'Priorities and Budget', with the reallocation of resources, released through efficiency improvements, to priority front line services. The plans include targets for the public sector to deliver efficiency gains of 2.5 per cent. each year over the period 2005–06 to 2007–08. During the same period the administration costs of civil service departments being held flat over the next three years and civil service numbers will reduce by 2,300 across all departments, thus reducing bureaucracy and releasing resources to priority areas.
	This 'Priorities and Budget' builds on the real growth in public expenditure that has occurred in recent years, and that will continue over the next two years. It provides the necessary investment, underpinned by reform, to equip Northern Ireland to move towards a better and brighter future.
	I have placed copies of the 'Priorities and Budget 2006–08' document in the Library."

Investment Strategy for Northern Ireland

Angela Smith: My right hon. Friend the Minister of State for the Northern Ireland Office (Lord Rooker) has made the following ministerial statement:
	"The Government have today published the first Investment Strategy for Northern Ireland. The Investment Strategy takes a longer term, more strategic view of Northern Ireland's infrastructure and investment needs.
	It is based on the recognition of the need to make best use of the opportunities presented by developments such as the Reinvestment and Reform Initiative and PPPs, along with historic capital budgets, to address the need of Northern Ireland for better public services after a lengthy period of under investment. In taking a longer term view of Northern Ireland's needs, the Investment Strategy allows decision-makers to ensure that investment in public infrastructure is directed to where it is most needed, is prioritised appropriately, and is delivered effectively.
	A copy of the document has been placed in the Library of the House."

TRANSPORT

European Union Transport Council

Alistair Darling: I chaired the Transport Council in Brussels on 5 December. The Minister of State, my hon. Friend the Member for South Thanet (Dr. Ladyman), was in the UK national seat.
	The Council received a progress report from the Commissioner on the "Air Transport Negotiations Between the EU and the US". The Commissioner reported on the progress made in recent talks with the US. For the UK, my hon. Friend stressed the need for a balanced package, in which changes on airline ownership and control are an essential element. Summing up, I welcomed progress so far, but noted that the Council could not reach any decisions until the US has concluded its internal rule-making process.
	The Council discussed the Commission's request for a mandate to open air transport negotiations with China. While there was agreement about the growing importance of China as an aviation market, the view of the Council was that it would be premature to give the Commission a mandate for community-level negotiations while the focus is on EU-US.
	Following a progress report on the amending regulation on aviation security, I concluded that there were good prospects for early agreement.
	The Council reached political agreement on three proposals from the "Third Rail Package".
	The rail market access directive was put to the Council as amended in prior negotiation to take account of member state's concerns. The directive would open the market for international rail passenger transport in 2010, including allowing "cabotage", that is, picking up and setting down passengers in the same member state, but enable member states to restrict competition where strictly necessary to protect public services. In reaching political agreement, the Council accepted requests for member states to be allowed to impose a levy on all passenger train services on their territory to contribute to the financing of services provided under public service contracts, provided certain conditions are met; and for market opening to be delayed until 2012 in those member states in which more than half of the turnover is derived from international traffic.
	Discussion of the market access directive has proceeded alongside consideration of relevant aspects of the proposal for a regulation on Public Service Obligations (PSOs) in land-based public transport. This would provide an updated regulatory framework for award of public service contracts and the financial compensation provided to operators. A progress report was noted by Council on the PSO element. In addition, the Council and Commission made a minutes statement stating that rail market opening can only be achieved step by step recognising public service needs, and committing the Council to try to reach political agreement on the PSO proposal as soon as possible in 2006 on the basis, inter alia, that member states should continue to have the possibility to award directly without competition contracts for rail public services.
	The Council reached political agreement on the regulation on international rail passenger rights. This builds on the existing international convention (COTIF/CIV) and creates new rights for international rail passengers on access to tickets and information, a system of compensation and assistance for passengers in case of delay, and specific rights of access and assistance for passengers of reduced mobility.
	There was political agreement on the directive on train crew licensing. It provides for a European licensing and certification system for train drivers, with the possibility for renewable derogations for "domestic" train drivers if it is demonstrated that application of the EC system would not be cost effective.
	The Council was unable to reach political agreement on the directive on driving licences. While there was recognition of the positive elements in the proposal, particularly regarding driving licence tourism and improved security, a significant number of member states still had problems with the proposal. In summing up, I reminded the Council that there was support for the measure from several member states and that the Council would need to return to it.
	The Commissioner gave a progress report on the Galileo project. He reported that the first Galileo satellite would be launched later in December and that progress on the concession had been made. In summing up, I emphasised the importance of ensuring proper functioning of the public private partnership to give value for money.
	The Council agreed conclusions on boosting employment prospects in the maritime sector. The conclusions aim at action by all stakeholders to sustain high-quality maritime skills and assure continuation of European maritime know-how across the broader sector. This is an example of a non-regulatory approach to a timely issue.
	The regulation on multi-annual funding for the European Maritime Safety Agency, for its work in responding to pollution caused by ships, and the regulation on information on the identity of air carriers were agreed without debate.
	Four of the presentations under AOB referred to in my pre-Council statement on 1 December were given as planned, namely on road safety, the new maritime package, the air traffic management Single Sky Project (SESAR) for which a PPP is proposed, and extension of the scope of the European Aviation Safety Agency.
	There were a number of additional AOB points.
	Ireland called for action on the current situation regarding ferry manning. The Commission recalled that there is no EC legislation on ferry manning at present, and that priority should go to achieving solutions through the social partner dialogue and to implementing higher standards based on the forthcoming Convention text from the ILO.
	The Slovenian Minister invited Ministers to a conference he is hosting in Ljubljana in January on Motorways of the Sea.
	France introduced a Memorandum calling for a strengthening of oversight of aviation safety: nationally, within the Community and within the International Civil Aviation Organisation. The Commissioner welcomed this approach.
	France presented a memorandum to the Council and expressed its concern about the impact of high fuel prices on road transport.

Local Transport Capital Settlement

Alistair Darling: Today I am announcing firm allocations for the 116 local highway authorities and six Passenger Transport Authorities in England, outside London, for capital expenditure in 2006–07. This will amount, in total, to a £1.6 billion package of funding to improve local transport, with £1.4 billion in this local transport capital settlement announced today, and a further £200 million for new major schemes, the details of which will be finalised early next year. This is the first part of some £8 billion over the next five years.
	This builds on the £8 billion of investment in local transport projects in the five years of the first Local Transport Plan period. That period saw a reduction in road casualties, an improvement in local road maintenance and better travel choices being delivered in many towns and cities. Today's announcement demonstrates the Government's commitment to building on these achievements.
	This year's settlement delivers firm funding for 2006–07, the first year of local authorities' second Local Transport Plans (2006–07 to 2010–11). We have also issued financial planning guidelines for the integrated transport block for the whole of the second LTP period. This will give authorities predictable funding levels for the next five years to enable them to formulate effective and realistic transport strategies.
	Funding has been released to allow authorities to continue work on major transport schemes already under construction. I will be announcing further 2006–07 funding for new major schemes next year after I have received regional advice on the prioritisation of schemes.
	Details of the 2006–07 allocations have been placed in the Vote Office and both Libraries of the House. Right hon. and hon. Members representing English constituencies outside London will receive details for the local transport plan area covering their constituencies, from their regional government office.